In the 3rd quarter of 2024, the debt of households in the United Kingdom amounted to 120 percent of their income. This indicator shows the average level of indebtedness of the the general population and their ability to repay their debts. The total value of household debt (total liabilities and loans to households) has increased annually since 2000. Debt to income ratio increased during the pandemic As we have seen here, households have been decreasing their indebtedness levels in the past years. However, the volume of new consumer lending actually soared between 2022 and 2024. Meanwhile, the growth rate of mortgages in the UK has remained lower these past years, but it has also shown an increase on amount of lending.

Indebtedness in Europe The household debt of many countries in Europe as a share of their disposable income in 2024 was over 100 percent. That was mostly the case for Northern and Western European countries, such as Norway, the Netherlands, and Denmark. Germany and Austria were some of the largest exceptions, as they were among the few countries in that part of Europe with households' debt representing less than 80 percent of hteir income.

Denmark, the Netherlands, and Norway were among the European countries with most indebted households in 2023 and 2024. The debt of Dutch households amounted to 200 percent their disposable income in , as they had a ratio of over 180 percent in the second quarter of 2024. Meanwhile, Norwegian households' debt represented 233 percent of their income. However, households in most countries were less indebted, with that ratio amounting to 97 percent in the Euro area. Less indebtedness in Western and Northern Europe There were several European countries where household's debts outweighed their disposable income. Most of those countries were North or West European. However, the indebtedness ratio in Denmark has been decreasing during the past decade. As the debt of Danish households represented nearly 273 percent in the last quarter of 2014, which has fallen very significantly by 2024. Other countries with indebted households have been following similar trends. The households' debt-to-income ratio in the Netherlands has also fallen from over 275 percent in 2013 to 200 percent in 2024. Debt per adult in Europe In Europe, the value of debt per adult varies considerably from an average of around 10,000 U.S. dollars in Europe to a much higher level in certain countries such as Switzerland. Debts can be formed in a number of ways. The most common forms of debt include credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.

Attitudes towards savings and debt differ greatly among countries worldwide. While the household debt in Denmark represented a 255 percent of their disposable income in 2021, those figures amounted to 26 percent in Mexico. Household debt represented a 148 percent of disposable income in the UK and 101 percent in the U.S..

Public sector net debt amounted to 88.9 percent of gross domestic product in the United Kingdom during the 2023/24 financial year, rising to 97.8 percent when the Bank of England is included. This is the highest debt incurred by the government since the early 1960s. After peaking at 251.7 percent shortly after the end of the Second World War, government debt in the UK gradually fell, before a sharp increase in the late 2000s at the time of the global financial crisis. Debt not expected to start falling until 2029/30 In 2022/23, the UK's government expenditure was approximately 1.15 trillion pounds, around 45.3 percent of GDP. This spending was financed by 1.02 trillion pounds of revenue raised, and 1.28 billion pounds of borrowing. Although the UK government can still borrow money in the future, it also needs to abide by certain fiscal rules, one of which is that debt should be falling within a five-year timeframe. Recent forecasts suggest that while this is expected to be the case, it is based on falling government deficits in the next five years. Next government faces hard choices Whoever wins the UK's 2024 general election will face tough economic choices in the coming years. Hitting fiscal targets, such as reducing the national debt, will require a careful balancing of the books, and possibly the need for either spending cuts or tax rises. The two major parties, Labour and the Conservatives, have both ruled out raising the main government tax sources, Income Tax, National Insurance, and VAT, and have so far remained silent on possible spending cuts. With limits on borrowing, and no tax rises or spending cuts, maintaining, let alone improving public services, will prove a challenging prospect for the next government.

Housing affordability in the UK has worsened notably since 2020, with the share of income spent on mortgage rising for first-time and repeat buyers. In 2023, homebuyers spent, on average, 20.6 percent of their income on mortgage payments, 4.4 percentage points higher than in 2020. This increase was higher for first-time buyers than for repeat buyers. House prices have soared since the COVID-19 pandemic, followed by a dramatic increase in interest rates. As fewer people can afford to buy a home, the number of mortgage approvals for house purchase has dropped.

The savings of households in the United Kingdom as a share of their income has been increasing between 2022 and 2024. In the second quarter of 2024, UK households saved, on average, 10 percent of their income. That was, nevertheless, much lower than the savings ratio reached as of the second quarter of 2020, when it peaked at 23.9 percent. The highest value recorded throughout the period.

This statistic shows the projected public sector net debt (PSND) of Scotland and the United Kingdom, in the scenario that Scotland were independent from the UK, from 2012/13 to 2062/63 as a percentage of national income. The model used is that of the Institute for Fiscal Studies from their study entitled ' Fiscal Sustainability of an Independent Scotland '. Until 2017/18, the PSND as a percentage of national income for Scotland is projected to be lower than that of the UK. In 2021/22 though, the percentage for Scotland is predicted to be 2.5 percent higher than that of the UK.

Germany’s total loan balances outstanding (including credit card, personal loan, and residential mortgage balances outstanding) recorded a compound annual growth rate (CAGR) of 3.1% during the review period (2014-18) to reach €1.7tn ($1.9tn). The burden of household debt to GDP growth is lower than other developed nations around the world, as German consumers are more averse to debt and have a higher savings ratio. The German economy is characterized by income and employment growth that has provided a boost in domestic consumption. This has resulted in a consistent fall in the household debt-to-GDP ratio since 2009. Despite political tensions and an expected economic slowdown, the fall in unemployment rates and rise in gross household disposable income are expected to prevent the country’s debt from increasing further. Consequently, we estimate the total loan balances outstanding to maintain the growth trend and record a CAGR of 3.1% over the forecast period (2019-23). Read More

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

In 2024, students graduating from English universities will have incurred an average of 48,470 British pounds of student loan debt, compared with 37,360 pounds in Wales, 25,730 pounds in Northern Ireland, and around 16,680 pounds in Scotland.

Revenue is expected to decline at a compound annual rate of 2.9% over the five years through 2024-25 to £190.9 million, including an estimated rise of 0.6% in 2024-25. Diminished consumer confidence and stagnant disposable incomes have pushed people to fix rather than replace broken appliances, particularly expensive items. Due to most manufacturers now providing guarantees on many purchases, independent repair services are often overlooked. These after-sales services typically last one to two years. Consequently, local services usually come into play only when warranties expire, decreasing demand for independent repair companies. More environmentally conscious consumers are choosing to repair their appliances instead of replacing them, which helps reduce waste and minimise carbon footprints. This sustainable shift aligns with the right-to-repair movement across Europe and the UK that supports legislation for easier, more affordable repairs, contributing significantly to environmental responsibility by extending the lifecycle of household items. Increased industry competition has constrained profitability because of pricing strategies to attract customers and discourage item replacement. This competition has hit smaller repair companies the hardest, as they lack the buying power of their larger counterparts. Revenue is expected to expand at a compound annual rate of 1.5% over the five years through 2029-30 to £205.2 million. The Right to Repair law, requiring major machine manufacturers to provide spare parts and technical data to independent repairers, should boost the industry - growth will stem from increased spare part sales and independently contracted repairers being used more. Forecast growth in household debt to disposable income ratio will also likely dissuade new purchases. However, extended warranties put repair businesses at risk, as consumers may choose warranty-covered services over independent repairs, potentially stifling revenue growth.

In the third quarter of 2024, Greece's national debt was the highest in all the European Union, amounting to 158 percent of Greece's gross domestic product. In spite of Greece's total being high by EU standards, it marks a substantial decrease from the historical high point reached by the country's national debt of 207 percent of GDP in 2020. Italy, France, Spain, Belgium, and Portugal also all have government debt worth over one year's production of their economies, while the small Baltic country of Estonia has the smallest national debt when compared with GDP, at only 24 percent. In debitum incrementum?A country’s national debt, also known as government debt or public debt, is defined as all borrowings owed by the government of a country. It usually comprises internal debt – owed to other governmental departments – and external debt, which is held by the public and is owed to government bond owners. National debt can be caused by a struggling economy in general, or by low tax income, which usually leads to money being borrowed from other governments for support, which in turn cannot be paid back right away. At first glance, a high national debt is not always a sign of a struggling economy – but since increasing debt can slow down economic growth significantly, it is imperative for the respective government to seek a steady reduction in the long run.

In 2025, households from the United Kingdom (UK) are expected to save over nine percent of their disposable incomes. This savings rate fluctuated significantly since 2007, with the lowest figures recorded in 2018 at five percent. In 2020, due to the coronavirus (COVID-19) outbreak and resulting lockdowns, savings rates spiked across the world. In the UK, savings rate reached roughly 16 percent that year, more than three times higher than in the previous year.

Of the G7 countries, Japan had the highest net debt in terms of share of gross domestic product (GDP) between 2010 and 2024. That year, Japan's government's net debt reached an estimated 156 percent of its total GDP. Italy had the second highest debt rate at 127 percent of its GDP, whereas Canada had the lowest at only 14 percent.

This statistic shows the public sector net debt as a percentage of national income in the United Kingdom (UK) from 2014/2015 to 2030/2031 according to the election manifestos of the four main parties. According to the Conservatives' plans, PSND will decrease down to 52 percent of national income, while Labour, Liberal Democrats and SNP manifestos anticipate a decrease to between 60 and 70 percent of national income by 2031.